Which of the Following Changes Would Increase the Present Value

question 49

Multiple Choice

Which of the following changes would increase the present value of a future payment?

• A)A decrease in the size of the payment.
• B)A decrease in the certainty of the payment actually being received.
• C)An increase in the amount of time that elapses before receiving the payment.
• D)A decrease in the interest rate.

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Definitions:

Personality Dimensions

Fundamental traits or characteristics that represent the broad aspects of an individual's personality.

Detachment

The inability to connect with others.

Antagonism

Hostility toward others.

Continuum Perspective

The view that mental health and mental illness exist on a spectrum, suggesting that individuals vary in degree of mental health or illness rather than being categorically healthy or ill.